Land Value Taxation received a good airing in the FT this week. It started with an article by Tory MP Nicholas Boles who wrote a piece entitled: It sounds bonkers but we should embrace a land tax. Boles suggests that taxing land value is usually associated only with those not in the mainstream but he points out how in particular a version of the tax in use in New South Wales works well in stimulating land use.
Two letters appeared later in the week:
Right first time – a land value tax would be ‘bonkers’
Who’s ‘bonkers’ about a land tax?
From Mr Clifford Lawrence.
Sir, I refer to the article by Nicholas Boles proposing a land tax (“It sounds bonkers but we should embrace a land tax”, September 30) and Geoff Copeland’s letter (October 6) giving further support.
They are too late! There are already six such taxes. They are as follows: business rates (when occupying or even not occupying a property), stamp duty land tax (when purchasing), Section 106 payments (when building on the land), the community infrastructure levy (also when building), corporation tax or income tax (on rental income) and capital gains tax (when selling the land).
How many more taxes are they proposing?
Clifford Lawrence, London SW1, UK
Of course he is right but each of these taxes has its disadvantages. How much more simple and efficient would it be if they we collectively replaced by a tax on the rental value of land falling on the owner.